Outdated processes stifle UK business growth opportunities

New research conducted by spend management provider Soldo indicates that outdated financial processes limiting employee access to budgets are stunting business growth in the UK.

The data reveals that 88% of senior finance leaders in the UK attribute missed growth opportunities over the past year to employees lacking direct access to their own budgets. The limitations in access have led to significant financial challenges, including financial losses (39%), loss of existing customers (38%), and delayed launches of products or services (39%).

Although 78% of these finance leaders express trust in their employees to handle company funds responsibly, hesitation remains to provide direct budget access. The primary concern is a perceived lack of understanding among employees regarding finance policies, a sentiment shared by 35% of the surveyed finance leaders. Consequently, 54% of UK employees admit to bending company rules to access necessary funds.

The research emphasises the negative impact that restricted budget access can have on business productivity and highlights the potential revenue opportunities that are being missed.

Specifically, 48% of employees report project delays due to interactions with finance teams, with slow response times and a focus on cost-cutting cited as key issues. A significant administrative burden is also noted, with one in six finance leaders spending over six hours weekly on tasks related to decentralised spending. Additionally, 73% of these leaders point out how complex processes interfere with supporting new business opportunities.

Brandon Till, Head of Transformation at Soldo, explained: "Everything in a business needs money, and when you don't empower employees by putting it in their hands then, put simply, things don't happen. The cost? Growth. This is demonstrated plain and clear by our findings."

Despite these challenges, the research suggests that greater access to budgets could enhance motivation, proactivity, and productivity. A significant number of senior leaders believe that granting more control to employees could lead to increased employee satisfaction and improved collaboration with finance teams, with 39% anticipating more motivation and 40% of employees expecting improved productivity.

Mr Till continued: "By empowering employees to make responsible decisions with their own budgets and freeing up financial leaders with the tools to proactively manage decentralised spending, organisations can quickly operate with greater efficiency and confidence."

The research methodology involved 205 senior leaders in finance teams from the UK and Italy, coupled with 200 finance professionals and 2,000 employees across various sectors. This comprehensive survey presents a case for reevaluating budget access protocols as a means to enhance overall business performance and growth.

In summary, Soldo argues that a reformed approach to spend governance could help businesses identify inefficiencies and eliminate waste to ensure sustained growth. "After all, controlling costs, increasing productivity and sustaining growth aren't just important, they're critical survival factors," Mr Till added.